Expert warns: Consumer advice centers criticize excessive discounts despite new price caps

Expert warns: Consumer advice centers criticize excessive discounts despite new price caps

According to a report by www.merkur.de,

The gas, heat and electricity price brake has been in effect since March 1, 2023. However, consumer advice centers are already warning against excessive discounts. Energy prices rose significantly, particularly due to the war in Ukraine.

The price brakes for gas, heat and electricity, which came into force on March 1, 2023, are intended to relieve the burden on consumers in Germany. However, consumer advice centers warn that the reductions are not being properly passed on to consumers. There have already been reports of significantly inflated March discounts, with discounts of up to 1,000 euros being debited. This prompted the Federal Association of Consumer Organizations (vzbv) to call on consumers to closely monitor the new discounts and report any discrepancies or discuss them with the energy provider. In many cases it can also be worthwhile to change provider.

The average relief varies depending on the federal state, although these amounts already apply for the months of January and February 2023. The vzbv is calling on energy suppliers to refund the relief to their customers on time by the end of March and is warning consumers not to stop saving energy, as the price caps only cover 80 percent of gas, district heating and electricity consumption. The consumer advice centers warn of “completely excessive discounts” for electricity and gas.

The current situation could lead to increased switching of energy providers as consumers look for alternative providers that adequately pass on the price controls to their customers.

The criticism from consumer advice centers could also affect consumers' trust in energy suppliers as a whole, which could lead to energy suppliers having to show more transparency and fairness in their pricing in the future.